We have been talking about market internals quite frequently since we believe are a key instrument to define market direction, especially when they present meaningful divergences.They helped us to spot previous bounce.
Some traders are confident about market being still on a range bound that will eventually break to the upside (like many other ranges before during 2009). We believe it will not since internals are weakening more and more this time...
Let's have a look
Summation Index for both NASDAQ and SPX has made a new low and of course presenting a huge divergence.
Bullish percent (PF chart based) ALSO making lower lows
Adv-decline issues also dropping
New highs- New lows also weakening, remember this one?
